Kernel Parameters

Networking

The device (or driver) has no link detection. So NetworkManager will show an unplugged device (see bug 490816 and gnome's 542916).

Workarounds : either

Left click on the nm-applet then click on "Wired Network" (each time you reboot) or

Create a the file /etc/default/NetworkManager to prevent NetworkManager from disabling the interface :

#Exit to prevent NetworkManager from running
exit

Solution:Build and install the "Linux Integration Services" drivers, freely available from Microsoft. The result will be that a non-legacy network adapter can be added from the Hyper-V Manager, vastly improving speed & functionality. However, this procedure is non-trivial because:

Microsoft has alternated between providing and not providing non-official support for the Linux IC drivers. The drivers were bundled with kernel version 2.6.32, but are slated for removal by 2.6.35.

Mouse

The mouse is working well. (the scroll button doesn't).

However, you can't use use the mouse inside your machine if you connect to the server using RDP. (The error message says "Mouse not captured in Remote Desktop session"). This has to do with the Debian install not being aware that it is dealing with an "enlightened" virtualized mouse. In order to get this "enlightened" mouse, you will need to build and install the "inputvsc" driver from the Citrix Satori Project. However, the inputvsc driver requires the "Linux Integration Services" drivers, see discussion above, to be built and installed.

Create the VM

The first time you run Hyper-V, you need to accept their specific EULA.txt:

Select the your server (on the left pane)

Go to Menu > Action > New > Virtual Machine.

Choose a name for your Virual Machine

Select the amount or RAM for the Vritual Machine (128Mb is enough for text only. 512Mb is recommended for GUI/Desktop).

Select the Network you have created during Hyper-V initial configuration (If the drop down menu is empty, clse the wizard, and go to Menu > Action > Virtual Network Manager).

Select a name and location for the disk image. You can change the maximum disk space allocated, but it isn't important since the space is allocated as needed. (Don't go below 6Gb unless you know exaclty what your are doing, not to shoot a bullet in your own foot).